Suppose Company A's Profits Increase by $10 Million and Nobody

question 236

Multiple Choice

Suppose Company A's profits increase by $10 million and nobody is made worse off. The CEO of Company A keeps all $10 million for herself. This situation

• A) is definitely efficient.
• B) is definitely not in the self-interest of Company A.
• C) is definitely not in the social interest.
• D) is definitely fair.

---

Definitions:

Accountants

Professionals who perform financial functions related to the collection, accuracy, recording, analysis, and presentation of a business, organization, or individual's financial operations.

Business Judgments

Decisions made in the management of a company that are based on reasonable information and belief for the benefit of the company.

Maturity Stage

A phase in the life cycle of a product, business, or industry where growth stabilizes and is characterized by steady sales and profitability.

Venture Growth

The expansion and scaling up of a startup or new enterprise, typically marked by increased revenue, customer base, or market share.